Cutting-Edge Internal Auditing Processes

Transcription

1 Cutting-Edge Internal Auditing Processes The purpose of this very unique course is to use workshop discussions to analyze further the challenges that the CAE s are facing in setting up cutting-edge auditing processes in their departments in accordance to best practices and the IIA. Course Objectives: Enrichment of knowledge: The scope for the course is to assist the participants to understand the needs and best practices for maintaining a Cutting-Edged IAD. All challenges will be discussed openly by all participating delegates coming from various backgrounds and industries. Updating of skills: During the course via the use of short presentations and the related workshop talks the CAE s will be discussing, analysing and given directions to achieving a topnotch internal audit department/process. Who Should attend? This is targeted to the upper level of management of an internal audit department. Heads of Internal Audit (CAE) Audit Managers and those about to be appointed to that role Audit supervisors Managers of other assurance functions such as Compliance or Quality Assurance Directors or VP s who need to know about the modern IA role CPE Points: 24 Advance Preparation: None Learning Level: Intermediate Advanced Field: Auditing Delivery Method: Group-Live

2 Course outline : The Modern Internal Auditor A. Classical V s Modern Internal Auditor How the IA profession has changed The transition from a Systems-based Approach to Risk based Auditing Risk and Internal Audit complementing each other E&Y and Protiviti survey results ECIIA research paper making the most of the IA function Customer complaints / employee complaints? Whistle Blowing policy? B. Facing those challenges head on! CAE s other roles beyond Internal Auditing (risk management and compliance independence and objectivity) Assurance services Vs Consulting services Developing the Risk-Based Audit Plan Quality Assurance audit of the IAD Board / AC communication Relationship between the IAD & RM Close monitoring of the effectiveness of the IAD using the WIP report Ensure that the strategies of the IAD are aligned with the company s strategies C. Corporate Governance: Introduction to Corporate governance CEO Vs Chairman of the Board roles and segregation of duties The three-way evaluation of the Board (sample templates will be provided) Board Committees and their structures Frequency of their meetings The relationship of the CAE with the Audit Committee The reporting lines of the CAE Role in Fraud and Fraud prevention Effectiveness assessment of the internal control environment by the AC Reporting of the AC Chairman to the Board AC and the relationships between the IA and the EA Educating the AC!

3 A fully functional IAD D. IIA Bench marking your Internal Audit department IAD stakeholders and their expectations Is the IAD exceeding these expectations? Do you obtain written feedback from your customers? if yes, bravo! If not, Why not? Assessment of the effectiveness of the risk management process. Assist the Risk manager to embed the risk culture in the organization. How? Is the IAD s employees aware what is RISK? IAD is aware of its own reputational risk? Reputation is the best asset but at the same time it can become its biggest nightmare! E. Enhancing the existing internal audit team Criteria for Recruitment process in the IAD: o What is your long-term strategy in building your IAD team? o When recruiting you look both internally and externally if no, why not? o Specialised knowledge? o Do you co-source? Do you outsource? or do have it fully internally? o When you consider recruitment what factors do you consider? Professional or not qualifications? Experience in the same industry or not? Competent internal auditor? Communication skills? Etc. Leaders versus doers mix? o Use of coaching? Teambuilding? Leadership? Training? o How often do you perform appraisals on your staff? After every audit? o Succession planning in the IAD? F. IIA - Internal Audit cutting-edge methodology IAD Charter IIA standards Policies & procedures manual of the IAD Code of Ethics Internal controls hard and soft controls The three lines of defense fully analysed and discussed ACFE Report to the Nations 2018 discussed Risk management from an internal audit perspective up to and including the riskbased audit plan Risk based internal audit methodology Writing a Risk based internal audit Report: o Do s and Don ts of an IA report

4 o o Full analysis of a risk-based IA report (template will be provided to delegates) The three reports into one: Executive summary Detailed report Report for Risk manager G. Continuous monitoring Why continuous monitoring? Who is responsible for continuous monitoring? Continuous assurance new guidance Continuous auditing and continuous monitoring CAAT s V s CAATT s The use of CAATT s for continuous auditing Continuous risk assessment techniques Examples of continuous auditing Thinking Out of The Box H. The applicability of the Three Lines of Defense Model and avoiding work duplication Third line Vs Second line i.e. Internal Audit, Compliance, Risk Management, AML, Security. The relationship between the risk register and the internal audit reports. Assisting the Risk manager to update the risk register with your findings. Environmental and Social audits where applicable First audit of the year should always be, without failure, the Approved Risk Register of the company. The organizations Business Continuity Plan (BCP &DR) has it been audited? I. The challenges of the consultancy role The IIA standards Why consultancy should be encouraged The difference in approach How to document these assignments Reporting consultancy assignments Audit by workshop Facilitation do s and don ts

5 J. Fraud Investigations Internal Audit Vs Fraud Investigations Additional skills required to perform a professional and competent investigation: o Interviewing skills o Observation skills o Body language skills o Financial knowledge o Custody of evidence K. Communication challenges The Art of a Zen Presentation: o Techniques and skills required to prepare an effective presentation o Skills needed to deliver a successful presentation Presentation to the AC of the report findings